BEFORE we start looking for properties, however, I will interview you to determine your financial goals, expectations, and resources. This helps us both determine what types of properties are suitable.
 

1. We identify a suitable property
   A property is initially deemed suitable based on its ROE, location, tenant, and similar factors. (For a discussion of ROE, please see Property Evaluation Metrics).
    
2. We send the listing agent a "Letter of Intent" (LOI).
   This is a two-page list of the terms under which we would consider purchasing the property:
   - Financing contingency and expiration date
   - Inspections contingency and expiration date (this is the "due diligence" period).
    
3. We negotiate terms and write a Purchase Contract (PC).
   The contract is written based on the agreed terms from the LOI. This document can often be as long as 20 pages, and does the following:
   - It contains the items we will investigate during the due diligence period, as well as various 'escape clauses'
     with which we can back out of the contract.
   - It identifies the initial earnest money deposit, often 1-2% of the purchase price (for example, on a $1 million
     purchase, the deposit is $10,000 - $20,000).
   Once the PC is signed by both buyer and seller, we are under contract.
    
4. You wire earnest money to the title company.
   This is done within 1-3 days of signing the PC. The earnest money is applied to the total purchase price at closing.
    
5. We begin the due diligence period.
   During this time, we investigate and inspect:
   - The property lease
   - The title commitment
   - Zoning
   - Easements
   - Income and expense statements for the last several years
   ...and we hire a building inspector and perform an environmental assessment. These two inspections may cost $2000 - $3000.
    
6. You apply for any loan required to purchase the property.
    
7. You increase the earnest money.
   Once the inspections contingency period is over - and we are satisfied that the property is as represented - you increase the earnest money another 1-2% and it becomes non-refundable (this is called "going hard" with the money).
    
8. We set a closing date.
   This is done once the financing commitment is in place.
    
9. We close the transaction.
   We will receive numerous documents, including:
   - Warranty deed
   - Assignment of the lease
   - Bill of sale for any personal property
   - Sometimes, a corporate lease guaranty is also included
   - Estoppel (a document signed by the lessee confirming terms of the lease).
    
10. You start receiving checks!